Optical communications components maker Oclaro Inc. announced Thursday that II-VI Inc. has exercised a previously announced option to buy its fiber amplifier and micro-optics business for $88.6 million.
Under the deal, which is expected to close around Nov. 1, II-VI will acquire the business’s amplifier and related subsystems business, and its micro-optics product lines, including intellectual property, inventory and equipment. Revenue for the business for the fiscal year that ended June 29 was approximately $94 million. II-VI will also hire approximately 145 Oclaro employees primarily located in Horseheads, N.Y., San Jose and Shanghai.
“The sale of our amplifier business to II-VI is another important milestone in Oclaro’s reinvention and return to financial stability,” said Oclaro CEO Greg Dougherty. “The infusion of cash from our recent transactions with II-VI are critical catalysts to further our restructuring and turnaround plans.”
In September, Oclaro said it was selling its Zurich-based subsidiary and gallium-arsenide laser diode business to II-VI for $115 million as part of its restructuring plan. As part of that deal, II-VI also paid $5 million for a 30-day option to buy the amplifier and micro-optics business.
II-VI said on Thursday that the new acquisition will complement the September purchase and is consistent with its strategy to focus on precision-engineered materials and optoelectronic components businesses. The amplifiers and micro-optics business will join II-VI’s Active Optical Products segment for financial reporting purposes.
“We will leverage the telecom laser-pump product line we recently purchased from Oclaro, and the business will benefit from the complementary product portfolio and capabilities of our Photop business unit,” said II-VI president and CEO Francis J. Kramer.
At closing, II-VI will pay Oclaro $79.6 million in cash; its $5 million option has also been credited against the $88.6 million purchase price. The remaining $4 million will be held by II-VI subject to traditional postclosing conditions.
Oclaro also announced Thursday that chief financial officer Jerry Turin will resign, effective Nov. 8, to pursue other opportunities. Turin has worked for the company for almost eight years, joining in 2005 as corporate controller. He was later promoted to vice president of finance before assuming the role of CFO in 2008.
For more information, visit www.oclaro.com or www.ii-vi.com